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Homeowners association (HOA) managers, board members, and executives have a responsibility to ensure that they remain up to date on the applicable Nebraska HOA laws. This is non-negotiable as it ensures that these private entities meet the criteria set out by the government.

Having a thorough understanding of state legislation can also help to guide your decisions and avoid penalties and messy lawsuits.

We have compiled a comprehensive overview of these laws to ensure that you know where to go to find the relevant information. This article is also designed to answer some of the most asked questions about Nebraska associations.

Firstly, What Is a Homeowners Association?

Homeowners or condominium associations are legal entities founded to oversee and maintain shared spaces and facilities in a residential neighborhood. Governing documents, such as the Declaration of Covenants, Conditions, and Restrictions (CC&R), establish the rules and regulations for members.

These documents are frequently recorded in county land records. HOA fees are paid by homeowners for common expenses, landscaping, financial management, and other community services. The association enforces its rules and regulations to protect property values and ensure a good quality of life for residents.

Compliance with the association's bylaws is vital, and violations may result in fines or legal action. Before acquiring a home, potential buyers should research HOA documents and fees to understand their obligations.

State Laws That Govern Homeowners Associations in Nebraska

The following laws apply to community associations in the state. It's important to remember that other statutes may apply, so you may need to hire a legal advisor to ensure that your HOA meets the standards set out by the state.

The Nebraska Nonprofit Corporation Act

Most Nebraska associations are established as nonprofit corporations and will be subject to the provisions of the Nebraska Nonprofit Corporations Act.

This act governs nonprofit corporations in terms of their organizational makeup and operation. If you would like to know more about an HOA's corporate status, you will need to contact the Nebraska Secretary of State.

Nebraska Condominium Act

This legislation applies to condominium regimes that were established after the first of January 1984. When a declaration or master deed is filed with the local registrar of deeds, a condominium regime is formed.

Nebraska Condominium Property Act

The Nebraska Condominium Property Act oversees the creation, administration, and operation of all condominium regimes established prior to the first of January 1984.

Nebraska Fair Housing Act

In addition to the federal Fair Housing Act, HOAs are subject to the Nebraska Fair Housing Act, which makes housing discrimination illegal in the state.

It was enacted on the 6th of September 1991 and is intended to eliminate discrimination in the purchase, ownership, possession, or use of real estate in Nebraska. Property owners may not be discriminated against on the basis of:

  • National origin
  • Color
  • Disability
  • Familial status
  • Race
  • Religion
  • Sex

It would not be possible for us to list all the federal, local, and Nebraska laws that apply to HOAs. This is why you may need to do your own research. You can find links to the laws mentioned above in the resources section at the end of this article.

Fines, Liens, and Foreclosures

In Nebraska, homeowners' associations can levy penalties on homeowners for late payment of assessments and violations of the association's regulations.

Community associations must provide members with adequate notification and an opportunity to be heard before issuing such penalties. The governing documents of the HOA control the notice and hearing obligations.

It's illegal for a homeowners association to ban or fine a homeowner for displaying the national flag. Furthermore, HOAs may not ban the installation of antennas, satellite dishes, and solar energy devices. However, they can enforce rules on how these items are placed.

If a homeowner fails to pay their dues, homeowners associations have the legal right to foreclose on their home by judicial or non-judicial methods. The organization will first place a lien on the property, and if the member fails to address it, the HOA can foreclose on the home to recover unpaid fees.

How DoorLoop's HOA Management Tools Can Help You

Nebraska HOA laws are vast, and ensuring compliance is of utmost importance to avoid penalties and unnecessary costs. This is why we recommend seeking legal advice to ensure that you have a good understanding of the applicable legislation.

However, it doesn't stop there. You will need to implement changes that ensure your association meets the requirements set out by the state. This includes holding regular meetings, providing sufficient notice of fines, and preparing financial records correctly.

To help you do all this and more, DoorLoop has designed an innovative set of property management tools that will streamline your day-to-day tasks and ensure that you can maintain transparency and compliance.

It features a powerful set of tools, all on one easy-to-use platform, and world-class support to ensure that you are able to make the most of the software.

To try DoorLoop's HOA management tools out for yourself, please get in touch with us to get a FREE demo! We're also here to provide more information to help you make an informed decision.

Closing Remarks

The successful administration of a Nebraska HOA starts with a comprehensive knowledge of the applicable laws. Then, you'll need to implement these guidelines. Contact us today to find out how you can do this with the help of our HOA management tools!

FAQs

Can you tell me more about the Nebraska Municipal Custodianship for Dissolved Homeowners Associations Act?

When a community association is dissolved according to the Nebraska Nonprofit Corporation Act, it may request for restoration.

The Nebraska Municipal Custodianship for Dissolved Homeowners Associations Act describes the reintroduction process and its conditions, which include filing an application with the Secretary of State.

This act can be found in Nebraska Revised Statutes in Article 31 of Chapter 18.

Is HOA membership mandatory in Nebraska?

There are no state laws that specify whether membership is mandatory. However, HOAs often include rules in their governing documents that make HOA membership non-negotiable.

When a new homeowner moves to a community governed by a mandatory HOA, they will be obligated to become a member. Real estate brokers are required to provide homeowners with information about the homeowners or condominium association upon the closing of a sale.

Can an HOA in Nebraska foreclose on a home?

Yes. HOAs have the power to foreclose on a member's home for unpaid assessments.

What powers do Nebraska HOAs have?

These associations can regulate shared spaces, collect assessments to cover common expenses, impose reasonable fines, and foreclose on a property if the owner fails to make payment.

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David is the co-founder & CMO of DoorLoop, a best-selling author, legal CLE speaker, and real estate investor. When he's not hanging with his three children, he's writing articles here!